Echotitbits – Nigeria News

Tag: Financial News

  • Central Bank Targets Exchange Rate Stability With New BDC Dollar Supply

    Central Bank Targets Exchange Rate Stability With New BDC Dollar Supply

    Reporting by BusinessDay indicates that the Central Bank of Nigeria (CBN) has reopened its foreign exchange window for Bureau De Change (BDC) operators. This strategic move is designed to narrow the widening gap between the official and parallel market rates, providing much-needed liquidity to the retail segment of the currency market.

    In an update published by the same outlet, the apex bank’s decision follows a period of heightened volatility that saw the Naira under significant pressure. By channeling funds directly through licensed BDCs, the CBN aims to decentralize access to foreign currency for small-scale users and travelers, thereby curbing speculative activities that have historically fueled inflation.

    Market analysts suggest that this intervention, coupled with the ongoing “clean-up” of the BDC sector, reflects a more aggressive stance by the regulator to maintain macroeconomic stability. The reopening of the “dollar tap” is expected to provide immediate relief to businesses that rely on the informal market for their foreign exchange needs.

    The Punch and The Nation have confirmed this development, noting the positive reception from financial stakeholders. The Punch reported that “operators expect the move to significantly reduce the premium between markets,” while The Nation quoted a source stating, “this is a vital step toward achieving a realistic exchange rate for the 2026 fiscal year.”

    Echotitbits take: This intervention is a reactive measure to the recent currency slide. While it offers short-term liquidity, the long-term stability of the Naira depends on Nigeria’s ability to boost non-oil exports and attract foreign direct investment. Watch for the CBN’s next Monetary Policy Committee (MPC) meeting to see if interest rates will be adjusted to complement this liquidity injection.

    Source: BusinessDay – https://businessday.ng/news/article/cbn-approves-150000-weekly-fx-sales-to-bdcs/, February 13, 2026

    Photo credit: BusinessDay

  • Naira Hits Two-Year High as CBN Resumes Dollar Sales to BDC Operators

    Naira Hits Two-Year High as CBN Resumes Dollar Sales to BDC Operators

    Figures cited by Vanguard show that the Nigerian Naira has reached its strongest position against the US Dollar in over two years, trading near the 1,351 mark in the official market on Thursday. This significant appreciation is largely attributed to the Central Bank of Nigeria’s (CBN) recent policy shift, which reopened the “dollar tap” for licensed Bureau De Change (BDC) operators. By allowing BDCs to purchase up to $150,000 weekly, the apex bank has effectively saturated the retail segment with much-needed liquidity.

    The ripple effect of this intervention has been felt across major commercial hubs like Lagos and Abuja, where the parallel market rate has stabilized between 1,430 and 1,440. Market analysts suggest that the direct involvement of BDCs in the official window has curbed the speculative demand that previously drove the “black market” to record lows. The increased transparency in price discovery is now allowing for more predictable business transactions for small-scale importers and travelers.

    Despite the positive momentum, a spread of approximately 90 Naira still exists between the official Nigerian Foreign Exchange Market (NFEM) and the street rate. However, the CBN’s strategy of consistent weekly auctions appears to be working to narrow this gap. Financial experts are optimistic that if this supply remains steady, the Naira could sustain its gains throughout the first quarter of 2026.

    In support of these findings, The Nation observed that “the influx of forex has calmed the nerves of manufacturers who were previously struggling to source dollars.” Furthermore, BusinessDay confirmed the trend, quoting a currency dealer who said, “The frantic demand we saw in December has evaporated because people can now get FX through official channels.”

    Echotitbits take: The CBN’s return to BDC interventions is a pragmatic move to control the retail forex market. While the appreciation is a win for importers, the sustainability of this trend depends on Nigeria’s oil production levels and foreign reserve health. Keep an eye on the next MPC meeting for hints on interest rate adjustments to complement this FX stability.

    Source: Daily Post – https://dailypost.ng/2026/02/11/naira-continues-to-appreciate-against-us-dollar-as-cbn-directs-fx-sales-to-bdcs/, February 12, 2026

    Photo credit: Daily Post

  • Naira Strengthens Against Dollar as Market Liquidity Stabilizes

    Naira Strengthens Against Dollar as Market Liquidity Stabilizes

    According to reporting by Vanguard, the Nigerian Naira sustained its positive momentum against the United States dollar during the early trading hours of Thursday, February 5, 2026. The local currency opened at approximately 1,368.56 per dollar at the Nigerian Foreign Exchange Market (NFEM), reflecting a steady appreciation from the 1,388 levels recorded only 24 hours prior. This recovery is largely attributed to the Central Bank of Nigeria’s (CBN) aggressive market-matching strategies and a robust increase in external reserves.

    The Electronic Foreign Exchange Matching System (EFEMS) has been cited as a primary driver for narrowing bid-ask spreads, fostering greater transparency within the official window. In the parallel market, the dollar exchanged between 1,450 and 1,465 across major hubs like Lagos and Abuja. Bureau De Change operators noted that while a premium remains, the gap between official and informal rates has contracted to one of its lowest margins in several months due to steady supply from diaspora remittances.

    The Punch and ThisDay have corroborated this downward trend in exchange volatility. Business analysts at The Punch remarked that “the Naira’s resilience this week suggests a shift from speculative behavior to demand-driven market fundamentals.” Similarly, ThisDay reported that “investor confidence is returning as the CBN stabilizes the liquidity pool,” with one analyst noting that “we are seeing the most stable foreign exchange window since the unification reforms of 2024.”

    Echotitbits take:

    The narrowing gap between the official and parallel market rates is a significant victory for the CBN’s monetary policy. If the current liquidity levels are maintained through Q1 2026, we expect a further reduction in imported inflation, which could lead to a potential softening of interest rates by mid-year. Watch for the next Monetary Policy Committee (MPC) meeting to see if these gains trigger a shift from the current 27% MPR.

    Source: BusinessDay – https://businessday.ng/news/article/naira-maintains-steady-rise-hits-n1358-28-as-reserves-grow/, February 5, 2026

    Photo credit: BusinessDay

  • Nigerian Naira Gains Ground in Official Market as Reserves Hit $46 Billion

    Nigerian Naira Gains Ground in Official Market as Reserves Hit $46 Billion

    Reporting by Vanguard indicates that the Nigerian Naira has maintained a strong positive trajectory against the United States Dollar during the mid-week trading session. In the Nigerian Foreign Exchange Market (NFEM), the local currency strengthened significantly, settling at approximately 1,400.66 per dollar. This appreciation is being fueled by increased liquidity and a surge in the country’s external reserves, which have now surpassed the $46 billion mark, providing a substantial buffer for the Central Bank of Nigeria (CBN).

    The stability in the official window is starting to reflect in the parallel market, where panic buying has largely subsided. While the “black market” rate remains slightly higher, trading between 1,480 and 1,485, the narrowing gap between the two rates suggests that the CBN’s recent monetary policy adjustments are beginning to take hold. Financial experts predict that if the current liquidity levels are sustained, the Naira could settle into a predictable range of 1,400 to 1,500 for the remainder of the fiscal year.

    Market data from MarketForces Africa corroborated the gains, noting that the “Naira touched N1,400 per Dollar in the Nigerian currency market” following a series of aggressive interventions. The Nation also reported on the currency’s resilience, with a financial analyst quoted as saying, “The absence of speculative pressure is a clear signal that the market is beginning to trust the current FX management framework.”

    Echotitbits take: The growth in external reserves is a vital sign of economic recovery, likely driven by improved crude oil production and foreign portfolio inflows. Watch for whether this stability translates into a reduction in the prices of imported consumer goods over the next quarter.

    Source: BusinessDay – https://businessday.ng/business-economy/article/naira-gains-as-reserves-reach-eight-year-high-of-46bn/ January 28, 2026

    Photo Credit: BusinessDay

  • PwC Forecasts 4.3% GDP Growth for Nigeria in 2026, Cites Reforms and Digital Shift

    PwC Forecasts 4.3% GDP Growth for Nigeria in 2026, Cites Reforms and Digital Shift

    Insights from The Punch show PwC Nigeria is projecting a 4.3% expansion in Nigeria’s GDP in 2026, pointing to energy sector recovery and ongoing digital transformation in financial services.

    The report also linked growth prospects to sustained reform momentum, including fiscal adjustments and improvements in oil-region security.

    PwC flagged risks around inflation and external shocks, warning that poorly managed transitions could squeeze SMEs.

    **Echotitbits take:** The projection is achievable—but only if reforms translate into investment, stable prices and inclusive growth. Watch for policy clarity and execution speed, especially around taxes, FX and energy.
    Source: BusinessDay — https://businessday.ng/business-economy/article/nigerias-tax-to-gdp-ratio-seen-rising-in-2026-as-reforms-kick-in/ 2026-01-08

    Photo Credit: BusinessDay